Weekly Africa Newsbriefs 15 January

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    Leriba Africa Newsbrief

     

     Week commencing 15 January 2018

     


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    Nigeria

    Chinese firm clinches Gelegele seaport deal

    Edo state governor Godwin Obaseki has signed a memorandum of understanding with China Harbour Engineering Company (CHEC) for the development of the Gelegele Seaport and other transport infrastructure. The deal will see CHEC lead the development of the seaport that will serve as a gateway for exporting manufactured goods from the Benin Industrial Park, which is still under construction, and other manufacturing companies in the region.

    The Guardian (Nigeria) 10 January

     

    Zimbabwe

    Hwange upgrade gets Chinese boost

    Work on the 600MW extension of Hwange Power Station is set to begin soon after China reaffirmed its commitment to facilitate the $1,5bn upgrade, among several other potential areas of trade and investment cooperation with Zimbabwe. The contract for the upgrade has been awarded to Chinese firm Sino Hydro, although financial closure is yet to be concluded amid concerns that Zimbabwe’s failure to service previous debts could be a stumbling block. However, China’s ambassador to Zimbabwe, Huang Ping, has given his reassurance that work on the Hwange power project will begin at the earliest date possible.

    The Herald Zimbabwe 10 January

     

    Cameroon

    Milost partners Producam to boost processing capacity

    Cameroon’s third-largest cocoa exporter, Producam, has been granted a funding facility by American private equity firm Milost Global. The $500m facility will help develop several Producam projects, including the construction of a cocoa bean processing unit with a capacity of 32,000 tonnes, expandable to 64,000 tonnes. The processing unit will be commissioned in the fourth quarter of 2018 and will produce cocoa butter, cocoa paste and cocoa powder.

    Business in Cameroon 11 January

     

    Tunisia

    Mediterania Capital invests in private education

    Mediterrania Capital Partners, a private equity firm focused on growth investments for small and medium enterprises in north and sub-Saharan Africa, has invested in Groupe Scolaire René Descartes, a private educational institution specialising in French and Tunisian programmes. The French private system offers teaching programmes ranging from pre-primary to high school, and is one of only three independent schools in the country to work with the Agence de l’Enseignement Français à l’Étranger (International French Teaching Agency).

     

    Africa Global Funds 11 January

     

    Kenya

    Japan’s Miniso opens shop at Nairobi malls

    Lifestyle brand Miniso opened its first variety store on 22 December at the Village Market, with a second store set to open at the Thika Road Mall on 15 January. The stores are part of Miniso’s global expansion plan. The company is also looking for companies to convert into local franchisees to help open more stores later in the year. Its products range from homeware and electronics to fashion and accessories.

    Business Daily 10 January

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Opportunity

   
A rapidly growing and urbanising middle class set to experience a consumption boom; the world’s greatest resources of as-yet-untapped agricultural land, oil, gas and countless other commodities; and a growing number of entrenched, stable democracies with increasingly sophisticated democratic institutions. Africa is the last major region in the world to offer the prospect of take-off phase economic growth, delivering world-beating returns to investors.
5.6%
GDP growth rate in the decade to 2013 average in Africa; 7% expected in the next decade
7
of the 10 fastest growing economies in the world over the next decade will be African
4
of the 10 most improved economies for doing business are in Africa
   
Urbanisation Natural Resources
The population of Africa’s cities will triple by 2050 with over one billion people living in cities by 2040. Lagos is the largest with over 12,4 million people. Urbanisation presents opportunities for tertiary sectors like retail, telecommunications, banking and logistics. Major recent discoveries in oil, iron ore, natural gas, and other key commodities are set to provide major economic stimulus. Urbanisation in Africa and the rest of the world will drive demand for natural resources which Africa is uniquely positioned to satisfy with both new and old discoveries.
   
   

Risk

     
90%
of African countries score below 50 in Transparency International's corruption perception index
16
African countries use International Financial Reporting Standards, others inconsistent
45
African countries have media sectors that are considered not free
   
The continent remains a difficult place to do business. The regulatory and legal structures common in much of the world are only nascent in many African countries. In rapidly changing economies, reputations are only starting to develop and information on performance histories difficult to obtain. Weak media sectors often mean that critical information relevant to potential exposures is never publicly  disseminated. Data are scarce making traditional investment analysis difficult if not impossible. The incentives facing local partners are opaque and may well be antithetical to outside investors’ interests. As in any rapidly changing environment, opportunists are aiming to exploit potential investors. Just as the opportunities in Africa are clear, the stories of investments gone wrong are sobering.
   

Solved

   
Leriba is a specialist consultancy with a unique combination of financial and political research skills. We help analyse opportunities and examine current investments for unforeseen political and financial risks. We recognise the investment
 
opportunities in Africa but we are pragmatic about the challenges. Our insights provide actionable information which directly pay off through better investment decisions.
PEOPLE OUR VALUES COUNTRIES INDUSTRIES 
Our directors have decades of experience in Africa. We work with a network of associates across the continent with support staff in London and Johannesburg
 
First and foremost we aim to make a positive contribution to our clients and to the societies in which we operate. Clients can have full confidence in our ethics, professionalism and discretion. Our staff are governed by a strict code of conduct and many are members of professional societies
 
Unlike some other consultancies, our analysts live and work in Africa and have built up substantial networks and insight. We are able to work in any of Africa’s 54 countries.
 
We have worked in a wide range of industries, including:
 
Banking, oil & gas, mining, telecoms, IT, retail, logistics, agriculture, insurance, fund management, FMCG, hotels & tourism, energy and infrastructure 
       
       

Weekly Africa Newsbriefs 15 January

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Weekly newsbriefs

Weekly Africa Newsbriefs 15 January

To receive this brief in your email every Monday, please subscribe here.

Leriba Africa Newsbrief

 

 Week commencing 15 January 2018

 


port-2467837_1280

 

 

 

 

 

 

 

 

 

 

Nigeria

Chinese firm clinches Gelegele seaport deal

Edo state governor Godwin Obaseki has signed a memorandum of understanding with China Harbour Engineering Company (CHEC) for the development of the Gelegele Seaport and other transport infrastructure. The deal will see CHEC lead the development of the seaport that will serve as a gateway for exporting manufactured goods from the Benin Industrial Park, which is still under construction, and other manufacturing companies in the region.

The Guardian (Nigeria) 10 January

 

Zimbabwe

Hwange upgrade gets Chinese boost

Work on the 600MW extension of Hwange Power Station is set to begin soon after China reaffirmed its commitment to facilitate the $1,5bn upgrade, among several other potential areas of trade and investment cooperation with Zimbabwe. The contract for the upgrade has been awarded to Chinese firm Sino Hydro, although financial closure is yet to be concluded amid concerns that Zimbabwe’s failure to service previous debts could be a stumbling block. However, China’s ambassador to Zimbabwe, Huang Ping, has given his reassurance that work on the Hwange power project will begin at the earliest date possible.

The Herald Zimbabwe 10 January

 

Cameroon

Milost partners Producam to boost processing capacity

Cameroon’s third-largest cocoa exporter, Producam, has been granted a funding facility by American private equity firm Milost Global. The $500m facility will help develop several Producam projects, including the construction of a cocoa bean processing unit with a capacity of 32,000 tonnes, expandable to 64,000 tonnes. The processing unit will be commissioned in the fourth quarter of 2018 and will produce cocoa butter, cocoa paste and cocoa powder.

Business in Cameroon 11 January

 

Tunisia

Mediterania Capital invests in private education

Mediterrania Capital Partners, a private equity firm focused on growth investments for small and medium enterprises in north and sub-Saharan Africa, has invested in Groupe Scolaire René Descartes, a private educational institution specialising in French and Tunisian programmes. The French private system offers teaching programmes ranging from pre-primary to high school, and is one of only three independent schools in the country to work with the Agence de l’Enseignement Français à l’Étranger (International French Teaching Agency).

 

Africa Global Funds 11 January

 

Kenya

Japan’s Miniso opens shop at Nairobi malls

Lifestyle brand Miniso opened its first variety store on 22 December at the Village Market, with a second store set to open at the Thika Road Mall on 15 January. The stores are part of Miniso’s global expansion plan. The company is also looking for companies to convert into local franchisees to help open more stores later in the year. Its products range from homeware and electronics to fashion and accessories.

Business Daily 10 January